Circular business models for whey valorization in the Kenyan dairy sector through product life extension and resource recovery

The transition toward circular bio-economy models in the dairy sector demands innovative strategies to valorize whey, a nutrient-rich byproduct often discarded as waste. This study analyzes four circular business models adopted by Kenyan dairy processors: (i) ricotta cheese production, (ii) whey-based yogurt drinks, (iii) fruit-blended whey smoothies, and (iv) whey protein concentrate (WPC) recovery. Using a mixed-methods approach combining case studies of ten processors, stakeholder interviews, and EcoCanvas business model analysis, the study reveals that only 0.45% of the 976,055 L of whey generated weekly is valorized. Ricotta production emerged as the most accessible and cost-effective pathway, while smoothies and yogurt offer nutritional value but face market penetration challenges. WPC recovery, though capital-intensive, presents opportunities for import substitution if processors collaborate to aggregate whey volumes. Theoretically, the study integrates Circular Economy (CE), Business Model Innovation (BMI), and Resource-Based View (RBV) frameworks to explain inter-processor differences in adoption, showing how firm capabilities, external enablers, and systemic reconfiguration interact to drive circularity. Practically, the findings inform policy and industry efforts to enhance waste-to-value transitions in developing dairy economies. Key limitations include a small sample size (n = 10), reliance on self-reported data, and a focus on cheese-producing processors. Future research should investigate cooperative valorization models, consumer demand for whey-based products, and lifecycle assessments of environmental outcomes. By addressing structural and institutional barriers, Kenya’s dairy sector can unlock significant environmental, nutritional, and economic benefits through scalable whey valorization strategies.